case study action plan for defining exercise my...

> 27THE FOUNDATION CENTER ◆ DEVELOPING A FUNDRAISING PLAN

CASE STUDYCASE STUDYEXERCISE

Action Plan for Defining My Case

InstructionsBased on what has just been covered in this step, what do you need to do when you get back to create a compelling case for your organization? What more do youneed to learn? Use this space to write your ideas.

44 < STEP 2: IDENTIFY FUNDING PARTNERS


Action Plan for IdentifyingFunding Partners

InstructionsBased on what has just been covered in this step, use this space to write your ideas about what you need to do when you get back to identify funding partners foryour organization. What more do you need to learn?

THE FOUNDATION CENTER ◆ DEVELOPING A FUNDRAISING PLAN > 55


Action Plan for Setting RealisticFundraising Goals

InstructionsBased on what has just been covered in this step, what do you need to do when youget back to set realistic fundraising goals for your organization? What more do youneed to learn?

70 < STEP 4: DESIGN A CAMPAIGN


Action Plan for Designing My Campaign

Based on what has just been covered in this step, use this space to write your ideasabout what you need to do when you get back to design your fundraising campaign.What more you need to learn?

EXERCISE Action Plan


InstructionsReview the action plans that you have developed at the end of each step.

1) What three ah-has have you discovered today?

2) What specific activities will you include in your action plan?What activities will you use to kick-start your action plan?

3) What more do you need to learn?

WORKSHEET Assert a Vision

Vision: A mental image produced by the imagination. A vision statement is a clear,powerful image that expresses an organization’s optimal goal and reason for existence. How would the world be different if the organization were completely successful in its endeavors? The statement is short and to the point.

“Organizations must have a very clear organizational vision and values that will resist erosion.”

—The Drucker Foundation, The Organization of the Future

Sample vision:“A World without AIDS” (for an AIDS-related organization)

InstructionsCompose a vision for your organization. You may want to conduct this exercise withyour executive director and board.

APPENDIX A: WORKSHEETS FOR YOUR PLAN84 <

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WORKSHEET Articulate a Mission Statement

Mission: The self-imposed duty an organization takes on. The mission statementdescribes how the organization seeks to make its vision a reality.

“The mission keeps the focus on doing the right thing.”—The Drucker Foundation, The Organization of the Future

Sample missions:“to help individuals of all ages—from children to senior citizens—with developmentaldelays and disabilities live full lives” (Association for the Help of Retarded Children inNew York City)

“to make our city a livable place” (Municipal Arts Society)

InstructionsWrite a possible mission statement for your organization. You may want to conductthis exercise with your executive director and board.

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WORKSHEET

InstructionsIn the space below list your organization’s assets that make it attractive toprospective supporters.

Conduct an Assets Audit


Accomplishments (core projects or programs, results or outcomes, statistics,awards, assessments by outside bodies)

Organizational history and distinction from other organizations

Human capital (core competencies of staff, leadership, board: skills, abilities, experiences)

Funding history and diversification (types of funding institutions, individuals, memberships, renewed funding)

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32 < THE FOUNDATION CENTER

Analysis of Other Agencies in the Field

This tool can be used to identify your nonprofit’s strengths relative to those of otherplayers in your field and geographical area. You will get the best result if a numberof people with different perspectives participate in the completion and discussion ofthe template.

WORKSHEET

ASPECT OF OPERATION OUR NONPROFIT

AGENCY:____________

AGENCY:____________

AGENCY:____________

OUR EDGE/CONTRIBUTION

Program•Target group/

customers•What program is•Outcomes•Success

Funding•Main sources and

proportions•Main strengths in

income generation

People•Skills•Motivation

Management

Physical Assets

Financial Health

Reputation

Impact/Results

Other Areas ofPotentialAdvantage

> 33BUILDING A SUSTAINABLE NONPROFIT ORGANIZATION

EXERCISE Blowing Your Own Trumpet

Please reflect on the assessment tool on the preceding page. We know that youwon’t have all the data you need at hand, but please identify what you believe arethe aspects of your nonprofit that enable it to make a bigger impact than otheragencies or a unique contribution or to raise more money. Think about how youwould articulate this “competitive edge” to someone outside your nonprofit. Writedown a few key words to capture the essence of your explanation. Please be willingto share this explanation with the class.

1. The main/unique strengths of my nonprofit________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2. How I would articulate this to people outside my nonprofit________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


CASE STUDYCASE STUDYWORKSHEET

Demonstrating the Need for Support

InstructionsAnswer the following questions to build your case for support.

What is your organization trying to achieve? (organizational goals and objectives)

What is the future direction of your organization?

What additional funding is needed for your organization’s programs and services?

What will the additional funding enable your organization to accomplish? (outcomes)

Where can you find the information to build your case for support?


WORKSHEET Mission-Money Matrix

Here are instructions on how to complete the matrix after the workshop, if you wantto use this tool in developing your nonprofit’s sustainability.

NOTE: This tool and its application can be found in books on strategic management and planning by Sharon Oster, and Michael Allison and Jude Kay,respectively (see the resource section of this workbook for the full references).

Instructions:

Step 1: Calculate mission contribution

Divide your nonprofit’s work into distinct activities (e.g. Afterschool program, Counseling Services, Fundraising).

Identify 4–5 people from different parts of the nonprofit. Ask them to individually judge what level of mission contribution each program/activity makes on a simple rating scale (1 = low, 10 = very high). Encourage them to use reports and data on each program to base their opinions. Share the results and as a group agree on the place of each program/activity in terms ofmission contribution.

Step 2: Assess the financial contribution of each program/activity

Calculate the surplus/deficit for each program by using a table like the onebelow. As a group agree on the place of each program/activity on financialcontribution axis. • Surplus = right of the horizontal line• Deficit = left of the horizontal line

PROGRAM:________

PROGRAM: ________

PROGRAM:________

PROGRAM:________

PROGRAM:________ FUNDRAISING TOTAL

INCOME1

DIRECTEXPENSES

MGT. &ADMIN.EXPENSES

SURPLUS/DEFICIT

1Income to be recorded under each program is revenue that is directly related to the program, in the form of earned income, a contract for the program or a restricted grant. Unrestricted income should be entered under fundraising.

> 11BUILDING A SUSTAINABLE NONPROFIT ORGANIZATION

WORKSHEET Mission-Money Matrix, continued

Step 3: Complete the Mission-Money Matrix

Place each program activity and fundraising in the appropriate space in the matrix.

SAINTS

DOGS

STARS

CASH COWS

Mis

sion

con

trib

utio

n

Financial contribution


WORKSHEET Your Current Funding Mix

Where exactly does your support come from, and what’s your net?

The starting point for any development in your income strategy is obviously whereyou are now. If you are in any doubt about what and how much exactly your nonprofitreceives from whom, this template may be useful. Your main interest will be in thenet amount from each activity and in how much unrestricted net revenue you receive.

Name of Nonprofit:____________________________________________

SOURCE OF SUPPORT¹

$ GROSS INCOME

% OF GROSS INCOME

$ DIRECTCOSTS²

$ NETINCOME³

% OF TOTALNET INCOME

% RESTRICTED

% UNRESTRICTED

TOTAL

Notes:¹Source of support include small individual contributions; major donors; foundations; government grants and contracts; fees for service, gifts-in-kind, etc. See table on page 31.

²Direct costs = ongoing expenses on people and equipment and items directly needed to secure funds from a given source.

³$ net income = $ total gross income minus $ direct costs.


How Diversified Is Your Current Funding?


InstructionsList your current funding sources. How diversified are they? Have there been any significant changes in recent years?

Funding category Dollar amount Percentage of budget

_______________ __________________ __________________

_______________ __________________ __________________

_______________ __________________ __________________

_______________ __________________ __________________

Total $ ______________

InstructionsIn the circle below, draw a pie chart of your organization’s current funding mix.Be sure to include all sources—both revenue and support—and corresponding percentage in the budget.

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1) Now you need to estimate how much money you think you can raise. List the questions you need to ask yourselves or the information you need to analyze in order to make these decisions.

2) Review your goals for each partner and enter that goal in the “Estimates for next year” column. Determine if you think you can actually make that goal and revise the goal if necessary after considering the questions you listed above.

Current year’s revenue Estimates for next year Realistic goal

Individuals, major donors

Associates of individuals& religious organizations

Foundation grants

Corporate contributions

Earned income (includes events)

Investment incomes

Government

In-kind contributions

Other (specify)

TOTAL BUDGET

To Raise

WORKSHEET Next Year’s Funding Mix


Instructions1) Review the pie chart of your organization’s financial state (page 83) and discuss

how you would like to adjust the chart through next year’s fundraising efforts and why you would like to make these changes.

How will this new funding mix look compared with the current year’s?

Current year New funding mix

2) What advantages do you see to these changes?

WORKSHEETNext Year’s Funding Mix,continued



Enlisting the Board ofDirectors

InstructionsWrite your ideas for gaining the endorsement of your campaign from the board ofdirectors and their participation in the campaign.



Strategies to Find the Matchwith Institutional Funders

InstructionsWrite some keywords in the categories below to describe your organization. These keywords can later be used to search for institutional funders that have similar interests.

Mission:

Services/Programs:

Populations Served:

Type of Organization:

Geographic Focus of Activities:

Types of Support/Organizational Needs:


Identifying InstitutionalFunding Partners


Instructions1) Innermost circle of the bull’s eye—list your organization’s stakeholders (current institutional

funders—foundations, corporations).

2) Middle circle—list your organization’s prospects (e.g., specific types of institutional funders that have or previously had a relationship with your organization).

3) Outermost circle—list some suspects or “wild cards”—prospects with whom your organization has never had a relationship.

“Wild Cards”

Prospects

Stakeholders



Identifying IndividualFunding Partners

Instructions1) Innermost circle of the bull’s eye—list your organization’s stakeholders (board, current

funders, staff, volunteers, etc.).

2) Middle circle—list your organization’s prospects (e.g., specific types of individuals who have or previously had a relationship with your organization).

3) Outermost circle—list some suspects or “wild cards”—those individuals of means and/or fame whose profile suggests an affinity to your organization’s mission, and with whom your organization has never had a relationship.

“Wild Cards”

Prospects

Stakeholders



Strategies for ApproachingIndividuals for Support

InstructionsBrainstorm ways to include various individuals and associations of individuals in your fundraising plan.

Category of individual Approaches

1.

2.

3.

4.

5.

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Creating a Gift Table forIndividual Supporters


A gift table sets specific targets for the number of individuals the organization needs and the level of support that they will be enlisted to provide. This chart is based on the simple premise that a few people will give big gifts, some people will give medium-sized gifts, and most people will give smaller gifts.

A gift table is generally calculated as follows:1–2 gifts = 20% of the goal2–4 gifts = 20% of the goal5–10 gifts = 15% of the goal10–20 gifts = 10% of the goal20+ gifts = 35% of the goal

InstructionsRefer to your list of individual supporters and the approaches on the previous page.Categorize (or segment) the different types and try and estimate how much could be raised from each category.

Gift size Prospects # of actual gifts Total $ % of total

(3x what you need)

___________ ___________ __________ $__________ ________

___________ ___________ __________ $__________ ________

___________ ___________ __________ $__________ ________

___________ ___________ __________ $__________ ________

___________ ___________ __________ $__________ ________

Your total goal for individual support: $____________

20%

20%

15%

10%

35%


Strategies for Identifying Earned Income Opportunities


What programs and services does your organization currently offer that generate income?

What does your organization currently give away to current constituents that you might charge them a fee for instead?

What does your organization currently give away to current constituents that you might charge a fee to a new group of customers?

What new product or service might your organization develop and market to current constituents?

What new products or service could be developed and marketed to new customers?

InstructionsAnswer the following questions to identify possible earned income opportunities for your organization.


A Real Value vs. Real CostAnalysis and Comparison

Use this tool to capture the value and costs and as the basis for making decisionsabout which sources of support in which to invest.

WORKSHEET

SOURCE ONE: _________ SOURCE TWO: _________ SOURCE THREE: ______

Potential gross $ value per year

Adjustments:• “crowd-in”• “crowd-out”• direct mission impact

Adjusted gross value per year

Direct costs of generatingfunds per year

Predicted annual net $ value

Start-up and new working capital needed

“Transaction costs”:• Attracting and managing

new relationship• Managing independence/

control:—External—Internal

• Managing reliability—Planning—Building Reserve

OVERALL RATING OF VALUE OFSOURCE TO NONPROFIT

© National Center on Nonprofit Enterprise. All rights reserved.



InstructionsIdentify potential individual donors for your organization. • Start with donors who are currently providing support or did so in the past.• Look for donors that are similar to others that have supported your organization.

Through research:• Look for prospects who connect with your organization’s mission• Look for prospects that will be interested in the locale or constituency• Identify prospects that are similar to those who have supported your organization

in the past or have supported similar nonprofits

For each dono r, estimate the level of support you could ask for based on your previous experience with them or based on your research

List contact persons that might connect you with these individuals

Setting Realistic Goals forIndividu al Support

Names or groupsof individuals

Amount ofprevious support

Amount of potential support

Rationale for potential support

Contacts to connectwith individuals

Stakeholders

Prospects

Wild Cards

TOTAL

SubtotalPercent of total



$%

$%

$

$%



Identify potential institutional funders for your organization. • Start with current or previous funders and similar funders.

Through research:• Look for prospects whose mission or program areas match with yours.• Look for prospects who will be interested in your locale or constituency.• Identify funders similar to those who have supported you or similar nonprofits.

Estimate each funder’s potential level of support based on previous experience withthem or based on your research. Subtotal each section and calculate the percentagethe section represents of the total amount you need from institutional funders.

Setting Goals forInstitutional Support

Name of Institution




Access to decision-makers or contacts

Stakeholders

Prospects

Wild Cards

TOTAL




$%

$%

$

$%



InstructionsIdentify potential individual donors for your organization. • Start with donors who are currently providing support or did so in the past.• Look for donors that are similar to others that have supported your organization.

Through research:• Look for prospects who connect with your organization’s mission• Look for prospects that will be interested in the locale or constituency• Identify prospects that are similar to those who have supported your organization

in the past or have supported similar nonprofits

For each dono r, estimate the level of support you could ask for based on your previous experience with them or based on your research

List contact persons that might connect you with these individuals

Setting Realistic Goals forIndividu al Support

Names or groupsof individuals




Contacts to connectwith individuals

Stakeholders

Prospects

Wild Cards

TOTAL




$%

$%

$

$%

WORKSHEET

InstructionsReview your ideas for earned income activities (page 92) and decide which ideas are most feasible and the amount of revenue that each can generate.

Setting Goals for Earned Income


Earned income activity

Amount ofprevious income

Amount of potential income

Rationale for potential income Who can help?

TOTAL


FUNDRAISING GOAL REALITY CHECK

Compare your initial fundraising goal with your organization’s revenue needs.

$ Total anticipated operating expenses

– $ Total anticipated revenuesalready committed/pledged

_____________________________________________________________

= $ Total required revenue for budget

After analyzing the goals from each fundraising strategy, determine arealistic fundraising goal for the year.

$________________________

Amount short of your projected revenue needs.

$________________________

If you anticipate that there will be a difference between the budgetrequirements and what you can realistically raise, what issues must your organization now address?

60 < STEP 4: DESIGN A CAMPAIGN

EXERCISE Build a Fundraising Team

InstructionsIdentify the tasks which you are currently doing. Check whether you are the primaryperson responsible or if you support someone else to perform the responsibility.

TasksMine

Others–Who?Primary Supporting

1. Conduct assets audit

2. Educate board about fundraising role

3. Institute board rule on donations

4. Gain agreement on board role in fundraising

5. Know overall budget

6. Know breakdown of funding sources

7. Write case statement

8. Compile all previous funders

9. Decide which funding sources to increase

10. Research potential donors

11. Identify institutional prospects

12. Identify funder contacts: board, staff, volunteeers

13. Determine individual fundraising strategies

14. Develop donor lists

15. Set institutionalfundraising goals

16. Set individual goals

17. Identify earned income activities

18. Set earned income goals

19. Set total fundraising goal

20. Develop fundraising plan

21. Assess teamcapabilities

22. Assign responsibilities

23. Enlist volunteers for fundraising

24. Enlist program staff for fundraising

25. Enlist board in fundraising


Build a Fundraising Team,continued


Where are the gaps?

Who else could you add to the team?

ApplicationTurn to page 100 and identify your fundraising team.

TasksMine

Others–Who?Primary Supporting

26. Develop a campaign calendar

27. Implement the fundraising plan

28. Write proposals

29. Prepare solicitation materials

30. Coach others to cultivate and solicit gifts

31. Set meetings with funders

32. Cultivate prospects

33. Solicit board gifts

34. Solicit general gifts

35. Organize fundraising events

36. Plan events

37. Prepare campaign and event mailings

38. Generate publicity

39. Attend events

40. Send thank you letters

41. Track income

42. Monitor activities and results

43. Evaluate fundraising efforts

44.

45.


Risk Management: How well diversified is mynonprofit income portfolio?

The ‘right’ level of diversification of income streams will vary by nonprofit field andby circumstances and times, but this basic checklist can be used to stimulatediscussion about the amount of risk cover you have and more research into exactlyhow effectively diversified your nonprofit really is.

WORKSHEET

INDICATOR YES NO COMMENTS

Our nonprofit has at least three of themain sources of support available.

Within each main source there are asignificant number of separate payerswhose decisions to support our agencyare unrelated.

Our nonprofit has one dominant sourceof support; we have a significant levelof expertise and/or particularly strong funder relationships in relation to thissource.

Unrestricted and unconstrained fundingforms at least 20% of our net income.


According to Aristotle, rhetoric is “the ability, in each particular case, to see theavailable means of persuasion.” He described three main forms of rhetoric: • Ethos is an appeal based on the character of the speaker. An ethos-driven

Statement relies on the reputation of its author in the eyes of the prospect.• Logos is an appeal based on logic or reason.• Pathos is an appeal based on emotion.

InstructionsKeeping Aristotle’s counsel in mind about effective communication, write down the elements of a script that you can use in approaching a prospective supporter.

WORKSHEET Write an “Ask” Script

WORKSHEET The Fundraising Plan


Develop the details of each strategy and make sure that they add up to your goalson page 97.

◆ Major donors

Subtotal major donors = $

◆ Individual donors

Subtotal individual donors = $

◆ Foundations

Subtotal foundations = $

◆ Local businesses and corporations

Subtotal local businesses = $

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WORKSHEET The Fundraising Plan, continued


◆ Associations of individuals and religious institutions

Subtotal associations = $

◆ Earned income strategies

Subtotal earned income = $

◆ Government grants

Subtotal government grants = $

Total strategies = $

CASE STUDYCASE STUDY

Tasks & Activities Personresponsible

To becompleted

by

$ Projection

January February March April May June Subtotals

Individual Fundraising

Foundation and Corporation Fundraising

Government Fundraising

Subtotals

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Worksheet

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FUNDRAISING CALENDAR JANUARY thru JUNE

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ApplicationTurn to page 105 and 106 to develop your fundraising calendar.

Tasks & Activities Personresponsible

To becompleted

by

$ Projection

July August September October November December Subtotals

Individual Fundraising

Foundation and Corporation Fundraising

Government Fundraising

Subtotals

CASE STUDYCASE STUDY

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FUNDRAISING CALENDAR JUNE thru DECEMBER

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Worksheet

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